“We believe the combination of reputational damage, upward pressure on expenses and potentially more conservative capital return request in 2015 will cloud Bank of America’s share price performance for the next few months,” says Matthew Burnell, senior analyst at Wells Fargo Securities.

Mr. Burnell, who has a market perform rating on Bank of America, said he doesn’t anticipate the error will have an overly material impact on the company’s bottom line. But he added the stock price will likely suffer more weakness in the weeks, and perhaps months, ahead.

Shares fell as much as 5.6% to $15.06 Monday. The stock is up more than 20% over the past 12 months.

BofA said the issue disclosed Monday is related to securities known as structured notes issued by Merrill Lynch & Co. before the firm agreed to be acquired by Bank of America in 2008. The company said it would review its financial accounts and expects to submit a capital action plan to the Fed that’s less generous than the previously announced 2014 plan.

Mr. Burnell said BofA could follow a similar trajectory to the one that BB&T Corp. suffered in March 2013 when the Fed rejected its capital plans. Shares of the Winston-Salem N.C. bank slumped 7.8% over a five-week time frame before bottoming at the end of April. More than two months passed before the stock recovered those losses.

Bank of America said the change has no impact on its previously announced financial statements.

“While this circumstance does not necessarily alter capital return as a component of the longer term thesis on this stock, it does undermine this driver in the near term,” said Eric Wasserstrom, an analyst at SunTrust Robinson Humphrey.

He maintained a neutral rating and $17 price target on the stock, as financial costs related to legal settlements and a lower capital plan will likely keep a lid on the share price.